Brent holds above $100 as tanker attacks deepen supply fear

Oil prices held steady on Thursday after Brent crude surpassed $100 per barrel, as traders feared further supply disruptions amid escalating attacks between Iran and the United States. Brent crude futures climbed 0.1% to $101.34 per barrel by 01:07 GMT, while US West Texas Intermediate crude rose 0.5% to $96.55 per barrel. Iran claimed responsibility for attacking ten vessels near the Strait of Hormuz following the US' sinking of five Iranian oil tankers.

Iran's Revolutionary Guard Corps vowed to intensify its retaliation against any additional attacks. Analyst Daniel Hynes of ANZ warned that the back-and-forth strikes may keep oil flows from the Persian Gulf disrupted for the foreseeable future, as the Strait of Hormuz, which typically carries about a fifth of global oil and gas supplies, remains far below its pre-war levels.

The US Energy Information Administration recently increased its oil price predictions for 2021 and 2022, citing a decline in global reserves due to the loss of Middle Eastern production. Hynes noted that the widening conflict could lead to even deeper oil supply disruptions, as the market struggles to adapt to the current challenges.